Bolstering jobs and salaries
Gov’t intends to slash social security contributions one percentage point further by 2027
Supporting employment by creating well-paid jobs, reducing employer social security contributions, the universal application of the digital labor card and sweeping inspections for the application of labor legislation make up the blueprint of priorities the new labor minister, Niki Kerameus, is reportedly determined to implement.
This context also includes her intention to start a dialogue with the social partners, with the aim of signing a new “social labor agreement.”
During the visit of Prime Minister Kyriakos Mitsotakis to the Ministry of Labor and Social Security on Thursday, the new leadership spoke in detail about its priorities, in a ministry that constantly produces issues concerning the daily life of citizens.
Of course, the situation seems to favor Kerameus as well as her deputy, Kostas Karagounis, as on the one hand many of the hot topics have now matured, such as for example the redesign of the unemployment benefit, or have already been decided, such as the gradual reduction of social security contributions, starting in 2025 with half a percentage point, and continuing in 2027. There is declared political intention to proceed with specific interventions – for example the increase of incomes or the universal application of the digital labor card.
A central role in the government policy belongs to the commitment to increase the minimum wage to €950 and the average to €1,500 by 2027, it was reiterated on Thursday.
Moreover, with the contribution of Deputy Minister of Labor and Social Security Panos Tsakloglou and General Secretary Nikos Milapidis, there are already some proposals ready for difficult social security matters, such as the application of the new, unified regulation of insurance and benefits to the Single Social Security Entity (EFKA), the reform of the Special Solidarity Contribution, the upcoming increase in pensions as well as the improved operation and operational support of the auxiliary pension fund (TEKA).
